Five Defense Stocks to Buy Right Now

#4 Orbital ATK Inc (NYSE:OA)

– Investors with Long Positions (as of December 31): 26

– Aggregate Value of Investors’ Holdings (as of December 31): $810.88 million

Orbital ATK Inc (NYSE:OA) is the only stock in this list that is trading with high single-digit losses this year. It seems that hedge funds had anticipated this move and that’s why, despite Orbital ATK Inc (NYSE:OA)’s stock rising by almost 25% during the fourth quarter, its ownership among funds covered by us declined by seven and the aggregate value of their holdings saw only a modest rise of 7.15%. Orbital ATK Inc (NYSE:OA) was born in February 2015 after the completion of the merger of Orbital Sciences Corporation and Alliance Techsystems. A large part of the drop that the stock has witnessed this year came after it reported its fourth-quarter results on February 29, but despite this decline it is still trading up by 30% from the day it started trading as a merged entity last year. On March 23, the company launched its fifth resupply mission to the International Space Station, carrying 7,900 pounds of cargo.

#3 Raytheon Company (NYSE:RTN)

– Investors with Long Positions (as of December 31): 35

– Aggregate Value of Investors’ Holdings (as of December 31): $1.07 billion

Amid a 14% rise in its stock during the fourth quarter, the ownership Raytheon Company (NYSE:RTN) among funds covered by us increased by four and the aggregate value of their holdings jumped $236 million. Billionaire David E. Shaw‘s firm D.E. Shaw more than doubled its stake in the company during that period to 447,717 shares. Though Raytheon Company (NYSE:RTN)’s stock is currently trading flat for 2016, it has appreciated by 150% in the last five years and generated even more returns for its shareholder if one includes the dividends it has paid during that period. The company has consecutively hiked its dividend in the past 11 years and currently sports an annual dividend yield of 2.15%. Taking into account Raytheon Company (NYSE:RTN)’s financial performance in the past few quarters, some analysts believe that the company can again hike its dividend by 10% this year. On March 16, the company announced that it will be designing new long-range missile systems for the US army to replace the current tactical missile system weapons.